Why sell niche products?
To answer this question that's using more practical example. Say you wanted to buy sunglasses
If you live in the United States chances are you would stop or shop at one of these places but what if you wanted wood sunglasses for sunglasses, where would you buy those amazon has a few shopify suppliers but Walmart, Target sunglasses that they don't sell wooden sunglasses. Why? Because what sunglasses are a niche product, the demand isn't high enough for these places. Now think about it from seller’s perspective:
If you wanted to start a business selling sunglasses traditional thinking suggest that you bulk buy a product that everyone wants to buy the problem. With this is that if you sell products that everyone wants you are going to have loss of competition and the last thing you want is to have to compete against a big national brand who has millions of dollars to spend on marketing and inventory, but if you were to sell wood sunglasses your competition would be very limited and therefore you would profit margins would be higher. Also you wouldn't have to work as hard to get customers because they would come to you since they don't have all the other alternatives.
I can tell you first-hand that I have tried to sell mass products and after a few months I found that the profit margins were too low and it took too much work to sell the products and I eventually gave up but when I started selling niche products it was a lot easier, because I didn't have to work as hard to find customers and the profit margins made it worthwhile.
When you start out I would recommend looking for products where you can earn a thirty to fifty percent profit margin and eventually work your way up to hundred percent profit margin.
So how do you find these niche products? This can be a bit challenging and requires a bit of our research generally speaking I look for a product that is really popular and trending and then I try to find variants of that product.